complete project

1. 1
INTRODUCTION

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COMPANY PROFILE
McDonald’s corporation – companyprofile,
information,business Description,history,Background
Information on McDonald’s corporation.
Company Perspectives:
McDonald‟s is the world‟s leading food service
organization.
We generate more than $40 billion in system wide sales.
We operate over 30,000 restaurants in more than 100
countries on six continents .We have benefits that come
with scale and a strong financial position. We own one of
the worlds‟ most recognized and respected brands. We
have an un-parallel global infrastructure and
competencies in restaurant operations,real estate,
retailing, marketing and franchising. We are a leader in
the area of social responsibility .we actively share our
knowledge and expertise infood safety and are committed
to protecting the environment for future generations.
Yet,we have not achieved our growth expectation for the
past several years.So,our challenge is to leverage our

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strength to profitably serve more customers more ways
more often.
History of McDonald’s corporation.
Since its incorporation in 1955,McDonald‟s corporation
has not only become the world largest quick-service
restaurant organization, but has literally changed
American‟s eating habits and increasingly the habits if
non-Americans as well. On an average day, more than 46
million people eat at one of the company‟s more than
31,000 restaurant,which are located in 119 countries on
six continents. About 9,000 of the restaurant are company
owned and operated;the remainder is run either by
franchisees or through joint venture with local business
people. System wide sales (which encompass total
revenue from all three types of Restaurants)total more
than $ 46 billion in 2003, nine major market
Australia,Brazil,Canada,China,France,Germany,Japan,Th
e United Kingdom,and the United States accounts for 80
percent of the restaurants and 75 percent of overall sales.
The vast majority of the company‟s restaurants are of the
flagship McDonald‟s hamburger joint variety .Two other
wholly owned chains,Boston

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market(rotisseriechicken)and chipotle Mexican
grill(Mexican fast casual),along with Pert a
manager(upscale prepared sandwiches),in which
McDonald‟s owns a 33 percent stake,account for about
1000 of the units.
Early History
In 1954 Ray Kroc, a seller of Multimixer milkshake
machines, learned that brothers Richard and Maurice
(Dick and Mac of was piqued his high tech
Multimixers)McDonald‟s were using Bernardino,
California eight in their San and he went to San to take a
look at the McDonald‟s restaurant.
The McDonald‟s had been in the restaurant business since
the 1930s. In 1948 they closed down a successful carhop
drive in to establish the streamlined operation Ray Kroc
saw in 1954. The menu was simple: hamburgers, cheese
burgers, French fries,shakes, softdrinks, and apple pie.
Thecarhops were eliminated to make McDonald‟s a self-
serveoperation, and there were no tables to sit at,
nojukebox, and no telephone. As a result, McDonald‟s
attracted families rather than teenagers. Perhaps the most
impressive aspect of the restaurant was the efficiency with

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which the McDonald‟s workers did their jobs. Mac and
Dock McDonald had taken great care in setting up
theirkitchen. Each worker‟s steps had been carefully
choreographed, like an assembly line,to ensure maximum
efficiency. The saving in preparation time,and the
resulting increase in volume,allowed the McDonalds to
lower the price of a hamburger from 30 cents to 15 cents.
Believing that the McDonald formula was a ticket to
success, Kroc suggested that they franchise their
restaurants throughout the country. When they hesitated
to take on this additional burden, Kroc volunteered to do
it for them. He returned to his home outside of Chicago
with rights to set up McDonald‟s restaurants throughout
the country, exceptin a handful of territories in California
and Arizona already licensed by the McDonald brothers.
Kroc‟s first McDonald‟s restaurant opened in Des
Plaines, Illinois near Chicago, on April 15 ,1955 the same
year that Kroc incorporated his company as McDonald‟s
corporation. As with any new venture, Kroc encounter a
number of hurdles. The first was adapting the
McDonald‟s building design to a northern climate.A
basement had to be installed to house a furnace, and
adequate ventilation was difficult, as exhaust fans sucked

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out warm air in the winter, and cool air in the summer.
Most frustrating of all, however, was Kroc‟s initial failure
to reproduce the McDonald‟s delicious French fries.
When Kroc and his crew duplicated the brother‟s method
leaving just a little peel for flavor, cutting the potatoes
into shoestring and rinsing the strips in cold water the
fries turned into mush. Afterrepeated telephone
conversation with the McDonald brothers and several
consultations with the potato and onion association,Kroc
pinpointed the cause of the soggy spuds.The McDonald
brothers stored their potatoes outside in wire bines,and
thewarm California breeze dried them out and cures
them,slowly turning the sugars into starch.In order to
reproduce the superior taste of these potatoes, Kroc
devised a system using an electric fan to dry the potatoes
in a similar way .He also experimented with a blanching
process. Within three months he had a French fry that
was, in his opinion, slightly superior in taste to the
McDonald brother‟s fries.
Once the Des Plaines restaurant was operational,Kroc
sought franchisees for his McDonald‟s chain. The first
snag came quickly .In 1956 he discovered that the
McDonald brothers had licensed the franchise rights for
cook county, Illinois (home of Chicago and many of its

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suburb)to the Frejlack Ice cream company. Kroc was
incensed that the McDonalds had not informed him of this
arrangement. He purchased the rights back for $25,000
five times what the Frejlacks had originally paid and
pressed forward.
Kroc decided early on that it was best to first establish the
restaurants and then to franchise them out, so that he
could control the uniformity of the stores. Early
McDonald‟s restaurants were situated in the suburbs.
Corner lots were usually in greater 100.
Kroc had decided at the outset that McDonald‟s would
not be a supplier to its franchisees his background in
sales warned him that such an arrangement demand
because gas station and shops competed for them, but
Kroc preferred lots in the middle of blocks to
accommodate his U-shaped parking lots. Since these lotto
were cheaper, Kroc could give franchisees a price break.
McDonald‟s grew slowly for its first three years; by 1958
there were 34 restaurants. In 1959, however, Kroc opened
67 new restaurants, bringing the total to more than could
lead to lower quality for the sake of higher profits. He
also had determined that the company should at no time
own more than 30 percent of all McDonald‟s restaurants.

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He knew, however, that his success depended upon his
franchisees success, and he was determined to help them
in any way that he could.
In 1960 the mc Donald advertising campaign look for the
golden arches gave sales big boost. Kroc believed that
advertising was an investment that would in the end
come back many times over , and advertising always
plays a key role in the development of the mc Donald
corporation-indeed, McDonald‟s ads have been some of
the most identifiable over the years in 1962 mc Donald‟s
replaced its speedy the hamburger man symbol which is
now world famous golden arches logo ,a year later the
company sold its billionth hamburger and introduced
Ronald McDonald ,a red hair clown with particular appeal
for children.
Phenomenal growth in the 1960’s and 1970’s
In the early 1960‟s McDonald‟s really began to take off.
The growth in US automobile use that came with
suburbanization contributed heavily to McDonald‟s
success. In 1961 Kroc bought out the McDonald brother s
for 2.7$ million, aiming at making McDonald‟s the
number one fast food chain in the country .

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In 1965 McDonald‟s corporation went public. Common
shares were offered at 22.50$ per share; by the end of first
day‟s trading the price had shot up $30. A block of 100
shares purchased for 2,250 in 1956 was worth , after 12
stock splits(increasing the number of shares to 74360)
about 1.8$ million by the end of 2003. In 1985
McDonald‟s corporation became one of the 30 companies
that make up the dow jones industrial average
McDonald‟s success in the 1960s was in large part due to
the company‟s skillful marketing and flexible response to
customer demand. In 1965 the filet-o-fish sandwich,
billed as “the fish that catches people “was introduced in
McDonald‟srestaurants. The new item had originally met
with disapproval fromKroc, but after its successful test
marketing, he eventually agreed to add it. Anotheritem
that Kroc had backed a year as a “hula burger” had
flopped. The market was not quite ready for Kroc‟s taste;
the hula burger„s tenure on the McDonald‟s menu board
was short. In 1968 the now legendary Big mac made its
debut, and in 1969 McDonald„s sold its five billionth
hamburger a year later, as it launched the “you deserve a
break today” advertising campaign, McDonald‟s
restaurants had reached all 50 states.

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In 1968 McDonald‟s opened its 1000th
restaurant and Fred
turner became the company‟s president and chief
administrative officer. Kroc became chairman and
remained CEO until 1973. Turner had originally intended
to open a McDonald‟s franchise, but when he had
problems with his backers over a location, he went to
work as a grill man for Kroc in 1956. As operations vice
president, turner helped new franchise, get their stores up
and running. he was constantly looking for new ways to
perfect the McDonald‟s system, experimenting, for
example, to determine the maximum number of
hamburger patties one could stack in a box without
squashing them and pointing out that seconds could be
saved if McDonald‟s used buns that were presided all the
way through and were not struck together in the package
.Such attention to detail was one reason for the company‟s
extraordinary success.
McDonald‟s spectacular growth continued in the 1970s
.American were more on-the-go than ever, and fast
service was a priority. In 1972 the company passed
$1billion in annual sales; by 1976, McDonald‟s had
served 20 billion hamburgers, and system wide sales
exceeded $3 billion.

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McDonald‟s pioneered breakfast fast food with the
introduced of the egg McGuffins in 1973 when market
research indicated that a quick breakfast would be
welcomes by customers. Five years later the company
added a full breakfast line to the menu, and by 1987 one –
fourth of all breakfasts eaten out in the United States
came from McDonald‟s restaurants
Kroc was a firm believer in giving “something back into
the community where you do business.” In 1974
McDonald‟s acted upon that philosophy in an original
way by opening the first Ronald McDonald House, in
Philadelphia, to provide a “home away from home” for
the families of children in nearby hospitals. Twelve years
after this first house opened, 100 similar Ronald
McDonald houses were in operation across the United
States.
In 1975 McDonald‟s opened its first drive-thru window in
Oklahoma City. This service gave Americans a fast,
convenient way to procure a quick meal. The company‟s
goal was to provide service in 50 seconds or less. Drive-
thru sales eventually accounted for more than half of
McDonald‟ssystem wide sales eventually accounted for

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more than half of McDonald‟s system wide sales.
Meantime, the happy meal, a combo meal for children
featuring a toy, was added to the menu in 1979.
Surviving the 1980’s “burger wars”
In the late 1970‟s competition from other hamburger
chains such as burger king and Wendy‟s began to
intensify. Experts believed that the fast-food industry had
gotten as big as it ever would, so the companies began to
battle fiercely for market share. A period of aggressive
advertising campaigns and price slashing in the early
1980‟s became known as the “burger wars”. Burger king
suggested that customers “have it their way”; Wendy‟s
offered itself as the “fresh alternative” and asked of other
restaurants, “where‟s the beef ? ” but McDonald‟s sales
and market share continued to grow . Consumers seemed
to like the taste and consistency of McDonald‟s best
During the 1980‟s McDonald‟s further diversified its
menu to suit changing consumer‟s tastes. Chicken
McNuggets were introduced in 1983, and by the end of
the year McDonald‟s was the second largest retailer of
chicken in the world. In 1987 ready-to eat salads were in
traduced to lure more health-conscious consumers.The

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1980s were the fastest –paced decade yet. Efficiency,
combined with an expanded menu, continued to draw
customers. McDonalds already entranced in the suburbs
began to focus on urban centers and introduce new
architectural styles. Although McDonald‟s restaurants
nolonger look identical, the company made sure food
quality and service remained constant
Despite expert‟s claims that the fast food industry was
saturated,McDonalds continue to expand. The first
generation raised on restaurant food had grown up. Eating
out had become a habit rather than a break in the routine
,and McDonalds relentless marketing continue to improve
sales ,innovative promotions such as the when the us
wins ,you wins give away during the Olympics games in
1988,were a huge success
In 1982, Michael r Quinland became president of
McDonalds Corporation and Fred turner became
chairman.Quinland,who took over as CEO in 1987 had
started as McDonalds at male room in 1963,and gradually
worked his way up. The first McDonald CEO to hold an
M.B.A degree, Quinland was regarded by his colleague‟s
as shrewd competitor. In his first year as CEO the
company opened 600 new restaurants

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McDonalds growth in the united states was mirrored by
its stunning growth in abroad .by 1991, 37% of the
systems wide sales came from restaurants outside the
united states.McDonalds opened its first foreign
restaurant in Britain Columbia, Canada, in 1967.by the
early 1990‟s the company had established itself in 58
foreign countries and operated more than 3600 restaurants
outside the united states,through holy opened subsidiaries,
joint ventures,franchiseesagreements. Its strongest foreign
markets were japan,Canada,Germany, Australia,and
France.
In the mid 1980‟s, McDonalds,like other traditional
employers of teenagers was faced with the shortage of
labour in the United States. The company met this
challenge by being the first to entice retirees back to the
work force .McDonald‟s plays great emphasis on
effecting training .it opened its hamburger university in
1961 to train franchisees and corporate decision makers
.By 1990,more than 40000 people had received bachelors
of hamburger logy degrees from the 80 acre oak brook,
Illinois facility. The corporation opened a hamburger
university in Tokyo in 1971, inMunich 1975 and in
London 1982.

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Braille menus were first introduced in 1979, and picture
menus in 1988.In march 1992 braille and picture menus
were re-introduced to acknowledge the 37 million
Americans with vision,speech or hearing impartments.
Quinlan continued to experiment with new technology
and to research new markets to keep McDonalds in front
of its competition.Clamshell fryers,which cooked both
sides of hamburger simultaneously,were tested.New
locations such as hospitals and military bases were tapped
for new restaurants.in response to the increase in
microwave oven usage, McDonald‟s,whose name in the
singlemost advertised brand name in the world, stepped
up advertising and promotional expenditures stressing that
its taste was superior to quick-packaged foods.
McRecycle USA began in 1990 and included a
commitment to purchase at least $100 million worth of
recycled products annually for use in construction,
remodeling and equipping restaurants.Chairs,table
bases,table tops, eating counters,table columns, waste
receptacles,corrugated cartons,packaging, and washroom
tissue were all made from recycled products. McDonalds
worked with the U.S. environmental defense fund to
develop a comprehensive solid waste reduction program.

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Wrapping burgers in paper rather than plastic led to a 90
percent reduction in wrapping material waste stream.
1990s Growing Pains
It took McDonald‟s 33 years to open its first 10,000
restaurants the 10,000th
unit opened in April
1988.Incredibly,the company reached the 20,000
restaurant mark in only eight more years,in mid-1996.By
the end of 1997 the total had surpassed 23,000 by that
time McDonald‟s was opening 2,000 new restaurants each
year an average of one every five hours.
Much of the growth of the 1990s came outside the United
States,with international units increasing from about
3,600 in 1991 to more than 11,000 by 1998.The number
of countries with McDonald‟s outlets nearly doubled from
59 in 1991 to 114 in late 1998 .In 1993 a new region was
added to the empire when the first McDonald‟s in the
Middle East opened in Tel Aviv,Israel .As the company
entered new markets,it showed increasing flexibility with
respect to local food preferences and customs.In Israel,for
example,the first Kosher McDonald‟s opened in a
Jerusalem suburb in 1995 .In Arab countries the
restaurant chain used “Halal” menus,which complied with

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Islamic laws for food preparation .In 1996 McDonald‟s
entered India for the first time,where it offered a Big Mac
made with lamb called the Maharaja Mac.That same year
the first Muskie-thru opened in Lindvallen,Sweden.
Overall,the company derived increasing percentages of its
revenue and income from outside the United States .In
1992 about two-third of system wide sales came out of
U.S McDonald‟s ,but by 1997 that figure was down to
about 51 percent.Similarly,the operating income numbers
showed a reduction from about 60 percent derived from
the United States in 1992 to 42.5 percent in 1997.
In the United States ,where the number of unites grew
from 9,000 in 1991 to 12,500 in 1997 an increase of about
40 percent the growth was perhaps excessive.Although
the complained that new units were cannibalizing scale
from existing ones. Same store scale for outlets open for
more than one year and the mature nature of the U.S.
market.
It did not help that the company made several notable
blunders in the United States in the 1990s.The McLean
Deluxe sandwich,which featured a 91 percent fat-free
beef patty ,was introduced in 1991 ,never really caught on
and was dropped from the menu in 1996.Several other

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1990s debuted menu items including fried
chicken,pasta,fajitas,and pizza failed as well.The “grown-
up”(and pricey)Arch Deluxe sandwich and the Deluxe
line were launched in 1996 in a $200 million campaign to
gain the business of more adults,but were bombs.The
following spring brought a 55 cent Big Mac
promotion,which many customers either rejected outright
or were confused by because the burger had to be
purchased with full-priced fries and a drink.The
promotion embittered still more franchisees,whose
complaints led to its withdrawal.In July 1997
McDonald‟sfroed its main ad agency Leo Burnett,15-year
McDonald‟s partner after the nostalgic “My McDonald‟s”
campaign proved a failure.A seemingly weakened
McDonald‟s was the object of a burger King Offensive
when the rival fast-food maker launched the Big king
sandwich, a Big Mac clone.Meanwhile,internal taste tests
revealed that customers preferred the fare at Wendy‟ and
Burger King.
In response to these difficulties,McDonald‟s drastically
cut back on its U.S. expansion in contrast to the 1,130
units opened in 1995,only about 400 newMcDonald‟s
were built in 1997.Plans to open hundreds of smaller
restaurants in Wal-Mart and gasoline station were

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abandoned because test sites did not meet targeted
goals.Reacting to complaints from franchisees about poor
communication with the corporation and excess
bureaucracy,the head of McDonald‟s U.S.A(Jack
Greenberg,who had assumed the position in October
1996)reorganized the unit into five autonomous
geographic divisions.The aim was tobring management
and decisionmaking closer to franchisees and customers.
On the marketing side,McDonald‟s scored big in 1997
with a Teenier Beanie baby promotion in which about 80
million of the toys/collectibles were gobbled up virtually
overnight.The chain received some bad
publicity,however,when it was discovered that a number
of customers purchased happy meals just to get the toys
and threw the food away.For a similar spring 1998 Teenie
Beanie givesaway,the company altered the promotion to
allow patrons to buy menu items other than Kids meals.
McDonald‟s also began to benefit from a ten-year global
marketing alliance signed with Disney in 1996.Initial
Disney movies promoted by McDonald‟s included 101
Dalmatians,Flubber,Mulan,Armageddon,and A bug‟s
life.Perhaps the most important marketing move came in
the later months of 1007 when McDonald‟s named BDD
Needham as its new lead ad agency.Needham had been

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the company‟s agency in the 1970s and was responsible
for the hugely successful “you deserve a Break Today”
campaign .Late in 1997 McDonald‟s launches the
Needham-designed “did somebody say McDonald‟s?”
Campaign, which appeared to be an improvement over its
predecessors.
A Failed Turnaround:Late 1990s and Early 2000s
Following the difficulties of the early and mid-1990s,
several moves in 1998 seemed to indicate a reinvigorated
McDonald‟s. In February the company for the first time
took a stake in another fast-food chain when it purchased
a minority interest in the 16-unit,Colorado-based chipotle
Mexican grill chain.The following month came the
announcement that McDonald‟s would improve the taste
of several sandwiches and introduce several new menu
items;McFlurry desserts developed by a Canadian
franchisees proved popular when launched in the United
States in the summer of 1998.McDonald‟s that same
month said that it would overhaul its food preparation
system in every U.S. restaurant .The new just in time
system ,dubbed “made for you “was in development for a
number of years and aimed to deliver to customers
“fresher, hotterfood”; enable Patrons to receive special-

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order sandwiches(a perk long offered by rivals Burger
King and Wendy‟s); and allow new menu items to be
more easily introduced thanks to cost about $25,000 per
restaurant, with McDonald‟s offering to pay for about half
of the cost; the company planned to provide about $190
million in financial assistance to its franchisees before
implementation was completed by year end 1999.
In May 1998 Greenberg was named president and CEO of
McDonald‟s corporation, with Quinlan remaining
chairman; at the same time Alan D.Feldman, who had
joined the company only four years earlier from Pizza
Hut, replaced Greenberg as President of McDonald‟s
U.S.A an unusual move for a company whose executives
typically were long–timers.
Also during 2001, McDonald‟s sold off Aroma café and
took its McDonald‟s Japan affiliate public, selling a
minority stake through an initial public offering.
As it was exploring new avenues of growth, however,
McDonald‟s core hamburger chain had become plagued
by problems. Mostprominently, the Made for you system
backfired. Although many franchisees believed that it
succeeded in improving the quality of the food, it also
increased service times and proved labor-intensive. Some

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franchisees also complained that the actual cost of
implementing the system ran much higher than the
corporation had estimated, a charge that McDonald‟s
contested .In any case, there was no question that Made
for you failed to reverse the chain‟s sluggish sales.
Growth in sales at stores open more than a year (known as
same-store sales)fell in both 2000 and 2001.Late in 2001
the company launched a restructuring involving the
elimination of about 850 positions,700 of which were in
the United States ,and some store closings.
There were further black eyes as well .McDonald‟s was
sued in 2001 after it was revealed that for flavoring
purposes a small amount of beef extract was being added
to the vegetables oil used to cook the French fries . The
company had cooked its fries in beef tallow until 1990,
when it began claiming in ads that it used 100 percent
vegetable oil. McDonald‟s soon apologized for any
“Confusion” that hadbeen caused by its use of the beef
flavoring, and in mid-2002 it reached a settlement in the
litigation, agreeing to donate $10 million to
Hindu,vegetarian,and other affected groups. Also in 2001,
further embarrassment came when 51 people were
charged with conspiring to rig McDonald‟s game

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promotions over the course of several years. It was
revealed that $24 million of winning McDonald‟s game
tickets had been stolen as part of the scam. McDonald‟s
was not implicated in the scheme, which centered on a
worker at an outside company that had administered the
promotions.
McDonald‟s also had to increasingly battle its public
image as a purveyor of fatty, unhealthful food. Consumes
began filing lawsuits contending that years of eating at
McDonald‟s had made them overweight.McDonald‟s
responded by introducing low-calorie menu item and
switching to a more healthful cooking oil for its French
fries. McDonald‟s franchises overseas became a favorite
target of people and groups expressing anti-American
and/or ant globalization sentiments. In August 1999 a
group of protesters led by farmer Jose Bove destroyed a
half-built McDonald‟s restaurant in Millau, France. In
2002 Bove, who gained fame from the incident, served a
three-month jail sentence for the act, which he said was in
protesters against a world Trade Organization (WTO)
meeting taking place there. In the early 2000s
McDonald‟s pulled out of several countries, including
Bolivia and two Middle Eastern nations, at least in part

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because of the negative regard with which the brand was
held in some areas.
Early in 2002 Cantalupo retired after 28 years of service.
Sales remained lackluster that year, and in October the
company attempted to revive U.S.Sales through the
introduction of a low-cost DollarMenu. In December
2002, after this latest initiative to reignite sales growth
failed and also after profits fell in seven of the previous
eight quarters Greenberg announced that he would resign
at the end of the year.Cantalupo came out of retirement to
become and CEO at the beginning of 2003.
Launching of Revitalization Plan under New
Leadership in 2003
Cantalupo started his tenure by announcing a major
restructuring that involved the closure of more than 700
restaurants (mostly in United States and Japan),the
elimination of 600 jobs, and charges of $853 million. The
charges resulted in a fourth-quarter 2002 loss of $343.8
million the first quarterly loss in McDonald‟s traditional
reliance on growth through the opening of new units to a
focus on gaining more sales from existing units.To that
end, several new menu items were successfully launched,
including entrée salads,McGriddles breakfast sandwiches

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(which used pancakes in place of bread), and white-meat
chicken McNuggets. Some outlets began test-marketing
fruits and vegetables as Happy Meal options.Backing up
the new products was the launch in September 2003 of an
MTV-style advertising campaign featuring the new tag
line, “I‟m loving it”.This was the first global campaign in
McDonald‟s history ,as the new slogan was to be used in
advertising in more than 100 countries.It also proved to be
the first truly successful ad campaign in years;sales began
rebounding,helped also by improvements in service. In
December 2003, for instance,same-store sales increased
7.3 percent.Same-store sales rose 2.4 percent for the
entire year,after falling 2.1 percent in 2002.
Principal Subsidiaries:
McDonald‟s Deutschland,Inc.; McDonald‟s restaurant
operation Inc.;McG Development co.; chipotle Mexican
Grill,Inc.;Boston Market Corporation ;McDonald‟s
Franchise GmbH (Austria);McDonald‟s AustraliaLimited;
McDonald‟s France, S.A.;MDC Inmobiliaria de Mexico
S.A de C.V.;McDonald‟s Restaurants
Pvt.,Ltd.(Singapore); Restaurants McDonald‟s
S.A.(Spain);McKim Company Ltd.(South Korea);Shin
Mac Company Ltd. (South Korea);McDonald‟s

26. 26
Nederland B.V. (Netherlands);Moscow-McDonald‟s
(Canada);McDonald‟s Restaurants Limited ( U.K.).
Principal competitors:
Burger King Corporation; Wendy‟s International,
Inc.;CKE Restaurants, Inc.; Jack in the Box Inc.;
SonicCorporation; Checkers Drive-In Restaurants, Inc.;
white castle System, Inc.; Whataburger, Inc,; YUM!
Brands, Inc.; Doctor‟s Associates Inc.
Chronology
Key Dates:
1948: Richard and Maurice McDonald openthe first
McDonald‟s restaurant in San Bernardino, California.
1954: Ray Kroc gains the rights to set up
McDonald‟s restaurants in most of the country.
1955: Kroc opens his first McDonald‟s restaurant in
Des Plaines, Illinois; he incorporates his company as
McDonald‟s corporation.
1960: TheSlogan, “Look for the Golden Arches, “is
used in an advertising campaign.
1961: Kroc buys out the McDonald brothers for $2.7
million.
1963: Ronald McDonald makes his debut.

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1965:McDonald‟s goes public.
1967:The Company opens its first foreign restaurant
in British Columbia, Canada.
1968:The big Mac is added to the menu.
1973:Breakfast items begin to appear on the menu,
with thedebut of the Egg McMuffin.
1974:The first Ronald McDonald House opens in
Philadelphia.
1975:The first McDonald‟s drive-thru window
appears.
1979:The children‟s Happy Meal makes its debut.
1983:Chicken McNuggets are introduced.
1985:McDonald‟s becomes one of the 30 companies
that make up the Dow Jones Industrial Average.
1998:The company takes its first stake in another
fast-food chain, buying a minority interest in
Colorado-based Chipotle Mexican Grill.
1999: Donates Pizza Inc. is acquired.
2000: McDonald’s buys the bankrupt Boston Market
chain.
2002: Restructuring charges of $853 million result
in the firm‟s first quarterly loss since going public.

28. 28
2003: McDonald’s sells Donatos in order to refocus
on its core hamburger business.
McDonald’s INDIA SUPPLY CHAIN
These strategies determine what is to be made and what
is to be purchased.so McDonalds follow these strategies
and have just –in –time inventory system. Which means
that the orders are placed as the raw material comes to
near finished. McDonalds maintain no inventory level
for published goods.
They Are:-
Dynamic Dairy Industries(Supplier of cheese &
butter)
Trikaya Agriculture (Supplier of iceberg lettuce)
Vista Processed Food pvt. Ltd (Supplier of chicken
and vegetable range of product including Fruits
pies)
Radhakrishna Foodland (Distribution center‟s for
Delhi Ad Mumbai)

29. 29
Amrit Food (Supplier of long life UHT Milk
Product for Frozen Desserts‟)
We are making a delivery schedule in a daily basis, and
following some the circumstances.
They Are:-
Deliver Steps.
Storage
Fried product
Cooking
Primary holding
Secondary holding
Wastage
Refrozen product

30. 30
RESEARCH DESIGN

31. 31
RESEARCH DESIGN
TITLE OF THE STUDY
“The Marketing Strategy of Product in McDonalds”
STATEMENT OF THE PROBLEM
Recent developments within fast food chains have
brought new challenges in Marketing strategies.
Specifically, keeping in view the “Needs and Wants” of
the consumers.It is to satisfy the customer needs in
selected target market at the same time to increase sales
and achieve a sustainable competitive advantage. It aims
to analyze the challenges faced in marketing and find
measures in order to overcome them so as to retain their
customers and achieve their main goal “Customer
Satisfaction”.

32. 32
OBJECTIVE OF THE STUDY
To know the existing marketing strategy of the
product
To identify recent major trends and developments in
marketing strategy
To understand the challenges faced by McDonalds in
marketing their product.
To study the measures taken to overcome the
challenges in marketing.
SCOPE OF THE STUDY
Identify needs and wants of the consumers.
To determine demand for product.
To identify competitors and product‟s competitive
advantage.
To identify new product area.
To identify new customers.
To know if strategies are giving the desired results.
METHODOLOGY
Methodology refers to the step by step procedures or
methods involved in the process of organizing the
information.

33. 33
Research is defined as the process of gathering, recording
and analyzing of relevant facts. A research report is a
writer document or oral presentation based on a written
document that communicates the purpose, scope,
objectives, hypotheses, methodology, findings, limitations
and finally, recommendations of a research project to
others.
TYPES OF TOOLS FOR DATA COLLECTION
Data was collected from primary as well as secondary
sources.
Primary sources
Primary data refers to the data that is collected through
direct access research i.e., research conducted through
direct contacts for the purpose of the present research
objectives. In this report the primary data was gathered by
the following means:
Interviews with manager
Secondary sources

34. 34
The secondary data refers to the information based on the
findings other than the primary sources. The data gathered
in the form of:
Magazines and newspaper
Previous research report.
Internet.
LIMITATIONS
The data was collected from manager in Bangalore
only therefore a detail and elaborate study could not
be attempted.
The survey includes the customer feedback on the
product in particular, the study and sample were
restricted.
It was a time consuming method in which continuous
guidance was required.
PLAN OF ANALYSIS
Data is collected and classified by random sampling.

35. 35
The classified data is tabulated and calculated into
percentages.
The data shown is interpreted for getting results
required for the research study.

36. 36
MARKETING STRATEGY

37. 37
MARKETING
“Marketing is the social process by which individuals and
organizations obtain what they need and want through
creating and exchanging value with others.” -Kotler and
Armstrong.
The above definition can be explained as Marketing is a
process by which one identifies the needs and wants of
the people, one determines and creates a product/service
to meet the needs and wants (PRODUCT), one
determines a way of taking product/service to the market
place (PLACE), one determines the way of
communicating to the market place (PROMOTION), one
determines the value for the product (PRICE), one
determines the people who have needs and wants
(PEOPLE), and then creating a transaction for exchanging
the product for a value and thus creating a satisfaction to
the buyer‟s needs or wants.
Marketing Research and Analysis
A business firm must be able to conduct a marketing
research and create an analysis of the market as these
processes help in the understanding of business goals and
the way the market operates. Structurally, marketing

38. 38
analysis is conducted with focus on the customers or
potential market, the organization or the company, and the
competitor.
In customer analysis, a very important aspect is
developing market segmentation where various customers
are categorized into different classifications. Marketing
managers must be able to profile each market segment
and classify them according to variables such as
demographics, behavior, needs, and other factors to be
considered in grouping customers. When the customers
and potential market are properly segmented, it is easy to
fulfill and satisfy their needs based on the factors
considered for each classification.
The second aspect is to make an internal marketing
analysis within an organizational structure. A business or
company should be able to understand its core
competencies and its capacity to compete with other
businesses. This means putting into great consideration
company resources and manpower, cost position in
comparison to other organizations, and profitability of the
company. Company analysis is figuring out how the
business can thrive in a competitive market and the
industry it functions.
Apart from developing detailed profiles on different
market segments, competitors should also be studied in
terms of strengths and weaknesses. A business that knows

39. 39
the moves and understands the trend of its competitor is
able to get into the main competition and is not left
behind. So, marketing managers must know how to
analyze other businesses in the industry they operate in,
considering factors such as source of profit, resources,
cost structure, and product comparison among others.
In marketing management, research is very crucial in the
process of creating market analysis. With marketing
research, a company is able to gather the data necessary
for accurate market analysis. There are two primary
methods in conducting a marketing research. The first
technique is called qualitative marketing research and an
example for this is focused-group study. The other one is
called quantitative marketing research which may be
conducted through statistical surveys.
Marketing Strategy
In the field of marketing, once a business is finally able to
adequately profile its customers and competitors, along
with its competitiveness in a particular industry,
marketing managers can design marketing strategies that
are important in capitalizing on company profits and
resources. Important strategic decisions in marketing are
grounded on specific objectives such as that of
maximizing revenue, market share, and level of
profitability.

40. 40
In attaining the marketing objectives, a company must
determine the specific market segments targeted for the
particular business. With a specific selection of target
customer segments, company resources are maximized
instead of being put to waste and revenue increases
subsequently. Additionally, companies are also able brand
their business with a key benefit that distinguishes the
company from the rest of its competitors.
Types of Marketing
The concept of marketing encompasses a wide coverage
and may even be associated with sales. In fact, sales and
marketing are two different concepts although both are
closely coordinated. Marketing is the presentation of the
products and services and making them available to the
customers with the goal of generating profits.
A sale, on the other hand, is the output of marketing
implementations. A business produces good product sales
out of effective marketing programs while poorly planned
marketing plans end up in low sales generation.
Focusing more on the concept of marketing, a business
organization must invest in intensive marketing activities,
what with the stiff competition that exists in almost every
kind of industry. Marketing introduces your products and

41. 41
services to your potential customers and target market. It
is an important factor in the success of a business.
Marketing is otherwise known as advertisement of the
products and services that your company can offer to the
market. So, the old maxim that no advertising is the worst
kind of advertising remains to be true especially at this
time when modern marketing methods have been
introduced.
Marketing can be conducted in various types and
techniques. A company can invest in any marketing
technique that works best and is effective to the
customers. But here, we have mention three proven types
of marketing that most companies have been using in
their product and services campaigns.
Offline Marketing
The advent of modern marketing has been very helpful
for most business, but traditional marketing is still as
effective and powerful as it used to be. Not to be
overlooked in this age of computers and internet
technology, offline marketing is still widely used by many
businesses.
Tri-media or advertising through print ads, television, and
radio have proven to be effective means of advertising
and increasing product awareness even until now.

42. 42
Newspapers continue to be used actively and widely
circulated by many print media organizations where
businesses occupy portions and spaces in the Classified
Ads to introduce their products and services.
However, companies reap more benefits if online and
offline marketing methods are combined. A good example
is the use of direct mail in order to lead customers to the
company website. In fact, a company can save a lot with
proper combination of marketing methods since offline
marketing can be costly.
Online Marketing
Online marketing is equally powerful and effective as
offline marketing. In fact, companies save a lot on their
marketing campaigns which are done through the internet.
Small-scale businesses can benefit greatly from online
advertising if marketing budget is an issue.
Apart from the savings a company can get, it can also
advertise its products alongside large-scale companies.
Affiliate marketing is a common type of online marketing
where a company ties up with an affiliate or an online
advertiser that will take care of advertising the company‟s
products and services to thousands of online users.
Another example is online video campaign with a
production cost that is a lot lesser than television
advertising.

43. 43
One particular advantage of online marketing over
traditional forms of advertising is that it can easily reach a
huge number of individuals in a short span of time. Plus,
the advertisement lasts longer and is unlimited.
Word of Mouth Advertisement
Word-of-mouth marketing is probably the best form of
advertisement a company can ever invest in. Not a single
penny is spent by the company with this kind of
advertising; only excellent customer satisfaction is needed
to make this campaign effective. Always keep a proactive
approach in dealing with customers and go the extra mile.
Building good relationships with customers keeps them in
the business. The good news is they will tell their friends
and people they know about Yhr Company and the kind
of customer service they have. With an effortless process,
the customers gradually increase in number which in turn
increases company profit.

44. 44
McDonalds Marketing Mix 5Ps Strategy
After analyzing the market, finding the key factor, target
segment and understanding the market demand, every
company needs to come up with offers or such type of
plan, that speed up the growth of the company. For which
McDonalds uses 5Ps of marketing which are as follows:
1.Product
2.Place
3.Price
4.Promotion
5.People
PRODUCT
Product includes, that how the company should design,
manufacture the product so that it enhance the customer
experience?
Product is the physical product or services offered by the
company to its customers. McDonalds include certain
aspects of its product such as packaging, desirability,
looks etc. This consists of both tangible and non-tangible
aspects of the product and services.
McDonalds has purposely kept its product depth and
product width limited. McDonalds had first studied the
behavior of Indian customer and provided a totally
different menu offered in international market. It removed

45. 45
pork, beef and mutton burgers from the menu. Even the
sauces and cheese used in India are 100% vegetarian as
most consumers in India are primarily vegetarians.
McDonalds continuously innovates the product according
to the changing preferences and taste of the customers and
also care is taken not to adversely affect the sales of one
choice by introducing a new choice. The recent
introduction is the Mc African piri-piri French fries,
McEgg etc.
McDonalds bring best product of quality and of best
features as per the preference and demand of the target
market.
PLACE
Place, as an element of the marketing mix, is not just
about the physical location or distribution points for
products. It encompasses the management of a range of
processes involved in bringing products to the end

46. 46
consumer at the right place, right time and in the right
quantity. McDonald‟s outlets are very evenly spread
throughout the cities making them very accessible. It
offers proper hygienic atmosphere, good ambience and
better services. Drive in and drive through options make
McDonald‟s products further convenient to the
consumers.
PRICE
Pricing strategy is most important aspect of market mix.
The customer‟s perception of value is an important
determinant of the price charged. Customers draw their
own mental picture of what a product is worth. A product
is more than a physical item, it also has psychological
connotations for the customer. The danger of using low
price as a marketing tool is that the customer may feel
that quality is being compromised. It is important when
deciding on price to be fully aware of the brand and its
integrity. In India McDonalds classifies its products into 2
categories namely the branded affordability (BA) and
branded core value products (BCV).
McDonalds came up with a very grasping punch line
“Aapkezamanemein, baapkezamanekedaam”. This
pricing strategy was founded to attract middle and lower

47. 47
class people and the effect can be clearly seen in the
consumer base that McDonalds has now.
McDonalds has certain value pricing and bundling
strategy such as happy meal, combo meal, family meal,
happy price menu etc to increase overall sales of the
product.
PROMOTION
The promotional activities adopted by the McDonald
helps to communicate efficiently with the target
customers. The skill in marketing communications is to
develop a campaign which uses several of these methods
in a way that provides the most effective results. For
example, TV advertising makes people aware of a food
item and press advertising provides more detail. Some of
the most famous marketing campaigns of McDonalds are:
“You deserve a break today so get up and get away-to
McDonalds”
“Foods, folks and fun”
“I‟m loving it”

48. 48
At McDonalds the prime focus is on targeting children. In
happy meals too which are targeted at children small toys
are given along with the meal. McDonalds corporate used
advertising, personal selling, sales promotion, public
relation, and direct marketing and became world‟s largest
leading Burger Empire. These five promotion tools are
used by McDonalds to integrate marketing
communication program which allows McDonalds to
access the communication channel clearly, consistently
and easily transfer messages and product to target
audiences.
PEOPLE
McDonalds understand the importance of both its
employees and customers. It understands the fact that a
happy employee can serve well and result in a happy
customer. McDonald continuously does internal
marketing because if it is effective it will automatically
lead to in the success of external marketing.
Internal marketing includes hiring, training and
motivating employees. In this way they can easily serve
customers and the result will be the smiling face of the
customers. The level of importance has to be placed in the
following order:
1.Customers
2.Front line employees

49. 49
3.Middle level managers
4.Front line managers
The punch line “I‟m loving it” is an attempt to show that
employees are loving their work at McDonalds and will
love to serve the customers.
SWOT ANALYSIS
Strength:
Strong brand
Product innovation
Supplier integration
Excellent supply chain
management
Weakness:
Low depth and width of
product
High employee turnover
rate
Opportunity :
Entry into breakfast
category
Threat:
Changing customer lifestyle
and taste

50. 50
Overseas expansion
Worldwide brand
recognition
Increased competition from
local fast food outlet
Rolling out McBreakfast across all outlets In India, the
company has recently launched its entry into the breakfast
food category. This is now launched on a pilot basis on
select stores. In Mumbai, it is available at the Vile Parle
outlet. The company views this category as a key growth
driver in future.
PRODUCTS
McDonald‟s continually reviews how its products relate
to dietary recommendations, at the same time it ensures
maintenance of the taste, quality, value and customer
satisfaction. McDonalds committed to reduce the amount
of additives , especially preservatives and colorants in the
products. They also provide nutritious information on its
products.
PRODUCT MARKET GROWTH MATRIX
The Product Market Growth Matrix is a marketing tool
which allows marketers to consider ways to grow the
business via new products, new markets. This matrix
helps companies decide what course of action should be

51. 51
taken given current performance. The matrix consists of
four strategies:
1.Market penetration strategy
2.Market development strategy
3.ProductDiversification
4. Diversification
PRODUCTS
MARKET
PENETRATION
PRODUCT
DEVELOPMENT
MARKET
DEVELOPMENT
DIVERSIFICATION
M
A
R
KE
TS

52. 52
MARKET PENETRATION STRATEGY
Market penetration occurs when a company enters
/penetrates a market with current products. The best way
to achieve this is by gaining competitors customers. Other
ways include attracting non-user of your product and
convincing current clients to use more of your
product/service. Market penetration occurs when the
product and market already exist in the market.
McDonalds is one most popular brand in fast food in
entire world.
MARKET DEVELOPMENT STRATEGY
Market development strategy targets non-buying
customers in currently targeted segments. It also targets
new customer in new segments. Marketing manager has
to think about the following questions before
implementing a market development strategy: Is it
profitable? Will it require the introduction of new or
modified products? Is the customer and channel well
enough researched and understood?

53. 53
The marketing manager uses these four groups to give
more focus to the market segment decision: existing
customers, competitor customers, non-buying in current
segments, new segments. McDonalds is currently
following above mentioned strategy, to focus on market
segments. For serving synonymously to the existing
customers they are coming up with different menus as per
change in taste and preference of their customer e.g.:
happy price menu, beverages including milk shakes and
cold coffees etc. Also, by keeping in mind their rivals
they are introducing products to compete them e.g. to
answer the KFC they came up with Chicken McNugget‟s.
They are adopting pricing policies for non-buying
customer and as well as new segments.
PRODUCT DEVELOPMENT STRATEGY
In business and engineering, new product development
(NPD) is the term used to describe the complete process
of bringing a new product or service to market. There are
two parallel paths involved in the NPD process: one
involves the idea generation, product design, and detai2l
engineering; the other involves market research and
marketing analysis.

54. 54
Companies typically see new product development as the
first stage in generating and commercializing new
products within the overall strategic process of product
life cycle management used to maintain or grow their
market share.McDonald's is always within the fast-food
industry, but frequently markets new burgers. Frequently,
when a firm creates new products, it can gain new
customers for these products. Hence, new product
development can be crucial business development
strategy for firms to stay competitive.
McDonalds are always enhancing their existing product
along with it; they also try to introduce new products so
that they can easily survive in market. For e.g. McEgg,
Fish-o-tella.
DIVERSIFICATION
Diversification is a form of growth marketing strategy for
a company. It seeks to increase profitability through
greater sales volume obtained from new products and new
markets. Diversification can occur either at the business
unit or at the corporate level. At the business unit level, it
is most likely to expand into a new segment of an industry
in which the business is already in.

55. 55
McDonald's made its foray into the hospitality industry in
2001, opening two hotels in Switzerland, at Zurichand
Lully. The "Golden Arch Hotels" were positioned as four-
star facilities with the latest in-room technology and very
original, modern interior design. Reactions and reviews of
guests following their stay there were mixed.
IMPORTANCE OF PRODUCT LIFE CYCLE IN
McDonald’s
The requirements of customers change over time and thus
the product offering has to be changed accordingly. What
is the trend today may be out of market within few weeks.
Thus continuous innovation is required.

56. 56
To counter these changes McDonalds has continuously
introduced new products and has phased out the old ones
which were at the declines age of their PLC. The
introduction is timed such that the new product does not
cannibalize (which eats same of it) the product already in
the maturity or growth stage. Thus the secret lies in
getting profits with different products in the different
stages of the PLC.A perfect example of revitalizing a
product in decline phase.

57. 57
The French Fries have been an important part of the
McDonalds menu worldwide. But now it was in the stage
of decline and was actually not generating proper return.
In an attempt to revitalize it, a new variant was introduced
namely Shake Shake Fries. This is being served with chat
pata spice mix which has resulted in increase in the sales
of French Fries and has elevated it from to the decline
stage. This is used to delay the decline of a well-
established product which has the potential of generating
further revenue.
BRANDING
One of the things McDonalds has proved is that they are
good at building brand loyalty. Even young children
know that when you see golden arches that you are close
to McDonalds.With its international expansion efforts,
McDonalds has become one of the most recognized

58. 58
brands world-wide. A couple of things that build
McDonalds brand in their constantly changing menu and
brand packaging that meets the needs of their consumers.
Co-Brands
Co-
brandingstrategyisalsooneofthebeneficialinstrumentforboo
stingthebusinessandprovidingdifferentthesamethingsindiff
erentmanner.Infactco-brandingmeanshavingatie-
upswithanotherfirmandservingthecustomerwithboththepro
ducts.Ithelpsinmakingprofitforboththebusinessenterprisea
swellastoincreasetheirsalesandgrowthoforganization.
There are different examples of co-branding strategy of
McDonalds which are as follows:
1.Coco-cola
2.Barbie
3.Cadbury
4.Hot wheels
MCDONALIZING THE SUPPLIERS
McDonalds has changed the nature of not only the food
service industry but also the food processing industry as
well. McDonalds realized that the battle between fast food
chains would increasingly be one of efficiency of supply,

59. 59
lower cost production and greater desire to innovate. It
pioneered with innovative and sophisticated food
distribution and packaging systems when the traditional
food processors were unwilling or unable to supply food
items that McDonalds demanded. They achieved amazing
consistency by giving more attention than anyone else to
field service and training at store level. McDonalds also
started with tiny suppliers and grew with them displaying
great loyalty.
Nowhere is the supplier loyalty more evident than in
development of new, improved products. Some of
McDonald‟s classic food items like Filet-o-fish, French
fries and Chicken nuggets etc. are results of supplier
innovation. Interestingly it took KFC more than three
years before in finally introduced its own version of
chicken nuggets. Thus supplier technological expertise
had given McDonalds a product which was not a mere
marketing innovation but a technical one. McDonalds
attempted to squeeze labor out of the stores by moving
more preparation back into the processing plant, creating
the opportunity to develop unique products based on
suppliers processing skills. For the first time, McDonald‟s
suppliers became the focal point of new product
development. This converted the fast food industry‟s most

60. 60
fragmented distributed system into more efficient one
which helped McDonalds reduced its inventory and
managed costs effectively.
COST
To offer high quality product sat low cost requires
efficient processes throughout the entire McDonalds
organization. Once again, this goal is built in to their
vision statement when they claim that we will be the most
efficient providers that we can be the best value to the
most people. McDonalds in corporates several ways of
approaching to provide great value to its customers. One
strategy that the company has employed for many years is
the value meal.
The value meal allows customers to buy a sandwich,
French fries, and beverage at a discount when purchased
together. McDonald‟s restaurants offer from seven to
twelve value meals, both for their lunch menu and
breakfast menu.
CHANGE IN STRATEGY
“Made For You”

61. 61
McDonald‟s organization recently underwent drastic
strategy changes to serve better to their customers. Under
their old system, ´the company would make several
sandwiches at once, and hold the sandwiches in a
warming bin until purchased by a customer. Under this
system, management had to accurately predict how much
food had to be put on hold. Accurate prediction had to be
used because if there were not enough food placed on
hold, this would create the problem of increase waiting
times for customers, and too much food would cause
waste of expired items. McDonald‟s dramatically changed
their strategy in order to stay competitive with other fast
food organizations.
In 1999, McDonald‟s spent $181million to introduce their
„Made for You´ system. Under this new system, standard
food items are not held in a bin until they are sold. In the
„Made for You´ system, modern technology greatly
assists McDonald‟s operations. When a customer places
an order, the sandwich items are immediately displayed
on a computer monitor in the kitchen and a tone sounds to
alert the kitchen staff.
Unfortunately, the introduction of the „Made for You´
system did not come easily. McDonald‟s watched its

62. 62
customer satisfaction drop for the three consecutive years
beginning in 1999. After further research, they realized
that although the new system provided fresher food, it
was not as quick as the previous system. Instead of
reverting back to the old system, McDonald‟s continues
to fine tune „Made for You´ and add new options to help
the system work faster.
REVITALIZATION PLAN
In order to cope with the first ever quarterly loss that
resulted from in efficient use of the made-for-you system
McDonald‟s has devised a new plan to increase profits.
Previously, the corporation emphasized adding more
restaurants to increase sales, but the new plan places
emphasis on increasing sales at existing restaurants.

63. 63
The new plan will reduce the spending, to enable more
cash to shareholders through dividends and share re-
purchases. Specific goals of revitalization plan are to:
1.Attract new customers
2.Encourage existing customers to visit more often
3.Build brand loyalty
4.Create enduring profitable growth
The main goal is to increase sales by creating an
exceptional customer experience. McDonald‟s plan is to
achieve this goal by focusing on its people, products,
places, prices and promotions.
MENU
Along with changes in their process strategies,
McDonald‟s has flirted with menu changes as well. Last
year, they offered a “new taste menu” where they offered
a new sandwich for a one week .the purpose was to offer
customers a variety of options to satisfy people‟s desire

64. 64
for a variety. However, the new taste menu proved to be
ineffective.
Some customers would fall in love with an item,but it
would only last one week, and they would be frustrated
that they couldn‟t purchase their new beloved favorite
sandwich.
More recent changes to the menu have proved effective.
McDonald‟s realized that many of today‟s customers seek
healthy food options, and he options, and the corporation
has offered items accordingly. As mentioned above
“competition bases,” McDonald‟s now offers a widely
variety of nutritious items and provides information to
help its customers as well as employees make informed
healthy choices
COMPETITORS’S ANALYSIS
McDonalds has been a leading fast food outlet. But the
market understudy has other competitors eating away into
its market share on the higher end, KFC has become the
potent competitor in the quick service field taking away
customers from McDonalds.

65. 65
Perhaps, in the new environment fast, convenience is no
longer enough to distinguish the firm. At this time, a new
critical success factor maybe emerging: the need to create
a rich, satisfying experience for consumers.
CORPORATE SOCIAL RESPONSIBILITY
Making customer happy is what our business about.
And we know it takes a lot time to happen. We work
hard to provide every customer with a choice of

66. 66
meals and an experiencethat exceeds their
expectations.
The preceding statement is the quote which
introduces McDonald‟s worldwide corporation social
responsibility report (2004). Although the company
strives to compete on several bases, their ambient
goal is customer satisfactions. They reach this goal
through a variety of efforts.
McDonald‟s visionary goal is to continually improve
their organization. One example is the manager on
duty task of completing a travel path, the manager
personally checks every aspect of the restaurant,
including :the lobby area where customers eat, the
restrooms, the grill area behind the counter, the walk-
in refrigerators and freezers, the stock area , as well
as entire perimeter outside restaurant .
Through completing travel paths, management
continuously checks every aspect of the restaurant
throughout the day.

67. 67
In addition to short term continual improvement,
McDonald‟s organization also thinks ahead for a long
term improvement.
To ensure that they serve 100%safe food,
McDonald‟s conducts food safety tests multiple times
throughout the day.

68. 68
RECOMMENDATIONS
AND CONCLUSION
RECOMMENDATIONS

69. 69
Consumer‟s likes, dislikes tastes and preferences,
health etc. have to be taken into consideration.
Company has to adapt itself to the local culture.
Low fat food should be launched.
Cheese French fries can be a good option.
They should come up with more variety of puff and
rolls.
In the malls McDonald‟s outlet should be enriched
with high class restaurant and soothing music.
Outlets should be there in colleges too.
Company should promote games on every table.
Conclusion

70. 70
In conclusion, the marketing mix plays a key
role in business, and is often the determining factor in
the extent to which a given organization succeeds or
fails. An organization can only exist if it has
customers, and the marketing dimension of business
develops that customer relationship. As a result, all
organizations should focus on developing an
effective marketing mix that distinguishes the
organization‟s services from other competitors, and
attracts customers. Considering the changing needs
of society, an effective marketing mix that includes
mechanisms of feedback, evaluation, updating and
constant improvement, such as that developed by
McDonald‟s, will benefit both the organization and
society.
Because McDonald's has taken much of the hard
work out of stock management, Restaurant Managers
are able to spend more time focusing on delivering
McDonald's high standards of Quality, Service and
Cleanliness. Customers are happy because they can
be sure the item they want is on the menu that day.
Efficient stock management is essential to any
business. It enables the business to operate in a
responsible way.

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The system also minimizes waste. Efficient use of
materials means that society's resources are being
used well with very few waste products. For
example, fewer materials end up as waste in landfill
sites. This leads to a reduction in costs. Due to lower
costs, McDonald's can pass the benefits on to
customers, providing better service and lower prices.
The reduction of waste provides a win/win/win
situation for McDonald's, its customers and wider
society.

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BIBLIOGRAPHY
Wikipedia.com
mcdonaldsindia.com
google.com

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Books:-
Philip Kotler- Marketing Management